In an attempt to compete with the numerous wallets in the market, especially those of large e-commerce retailers, Oxigen has created a virtual prepaid card for e-wallet users in partnership with Visa and RBL Bank, reports fe Bureau in Bengaluru. While e-retailers can prevent customers from using the Oxigen wallet to transact on their sites, they cannot prevent customers from using a virtual prepaid card.
Large e-retailers are loath to allow customers to transact on their marketplaces with wallets belonging to other players. Banks, too, are reluctant to allow their customers to load cash from their bank accounts to others’ wallets.
It’s not clear whether virtual cards will help but Paytm plans to roll out a prepaid virtual card with ICICI Bank while Freecharge — owned by Snapdeal — is partnering with MasterCard for this initiative.
With Visa Prepaid, customers simply fill in the payable amount in the Oxigen Wallet app and create their prepaid card in seconds, giving flexibility to transact on all e-trade and payment sites that accept Visa.
Ankur Saxena, director and chief mentor, Oxigen Wallet, told FE: “This gives us a head start to offer something unique which is not available with other players. This initiative is going to be jointly promoted by Visa and Oxigen and we expect to spend about Rs 40-50 crore on promotion over the next one year.”
“Since the activity of creating a card in our wallet is a Visa-authorised activity and since there is a bank involved at the back end, this card is no different from the debit card issued by any other bank,” he added.
Oxigen Wallet allows customers to create multi-use Visa cards on their phone, which is also transferable to friends or family members through the app. Visa Prepaid also empowers individuals who do not have access to a physical card to seamlessly replace the traditional cash-on-delivery payment option for e-commerce transactions with a card they can control based on their preferences.
According to the firm, it has a retail footprint of 200,000 outlets and has processed over 2 billion transactions till date with a current transaction volume rate of 600 million transactions per annum. It claims to have a customer base of over 150 million.